30-11-2017 Dax Technical Analysis

Good morning traders and welcome to the 30-11-2017 Dax Technical Analysis. Our long from yesterday was stopped out at break even. This was a little unfortunate considering we had well over 100 points profit at the highs. The chart above shows the fork that I was drawing during the premium webinar yesterday and during that webinar, I was thinking out loud regarding my trade management. I decided to keep the trade open, but this chart provides an alternate view. There is always something to learn from these trades, so I will take what I can from this trade.

I remain delighted with the forward testing of my algo (built myself from the ground up). See our trade history and performance here: https://goo.gl/N6yoGK

John took the premium webinar today and discussed how reading the price action is still the most important skill as a trader. The ability to draw good lines only compliments that skill. The way to improve your ability to read price, is to review every session and every point of interest and look at what price action did. Some charting platforms will allow you to replay the market, other platforms will allow you to do a bar by bar read, see what you can do on yours.

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30-11-2017 Dax Outlook

It’s still decision time!

Yesterday sellers made a statement just under 13200, they are currently defending that zone and are slapping price down with ease. The buyers are still trying but struggling to find a platform to build up enough energy to break through, so we have a battle zone.

We attempted to break the value area on the daily chart yesterday, but ended up closing inside it. We are attempting to break it again today, so let’s see how that works out. (See chart 1 below)

The minor swings are visible on the 60m chart and we remain trapped between 12905-13212, one of these levels needs to break. This is why we are at a decision point. (See chart 2 below)

Bulls

Wait for a break of 13212 and then buy a pullback is one strategy. Another could be to buy low, assuming that the current range will hold. This would involve watching sellers take control again and taking price much lower, perhaps towards 13,000.

Bears

This fork (above) is still valid and sellers are active. The market often provides an opportunity for a second bite and this test of the UMLH (upper median line parallel) may well be it.

30-11-2017 Dax Charts

Daily Chart – Major Swings

30-11-2017 Dax Chart 1

60m Chart – Minor Swings

• Still making higher lows
• Pierced (washed?) the lows of the fork (pierced the LMLH)

30-11-2017 Dax Chart 2